21950183087900 Essays - Xiaomi, Smartphones, Economy Of China

21950183087900 Essays - Xiaomi, Smartphones, Economy Of China 21950183087900 Xiaomi's globalization strategies Location: Astana Course Code: MGMT621 Course Name: Strategic Management Professor: Stephan J. Wirtz , MA, MBA, DDA Student(s) Name(s) : Nurzhan Sikhimov INTRODUCTION The work aims to study and analyze the factors that led to the success of Xiaomi company, its current position among its competitors in the domestic and the world market. Xiaomi was founded in April 6, 2010 by serial entrepreneur Lei Jun, who is one of China's top 20 richest person with net worth US$ 9.1 billion according to Forbes. It crafted smartphone hardware, software, and internet services as well as accessories with the help of smart and talented people that it hired from Google, Kingsoft, Microsoft, Motorola, Yahoo and other successful technology companies around the globe. Xiaomi has sold more than 60 million smartphones worldwide in 2014, with more than 18 million handsets in China alone, resulting in US$ 12 billion revenue. Their presence is mainly in the Asian region such as China, Malaysia, Singapore and Philippines. Xiaomi's focus is to produce reliable, user friendly, mobile applications and affordable phones to customers. Xiaomi is currently the third largest smartphone producer in the world with over 5,000 employees worldwide. As of December 2014, Xiaomi has achieved the status of the most valuable technology start-up in the world after it successfully secured US$1.1 billion investment with a company valuation of US$ 45 billion [1] To understand reasons for the company's success, the business model canvas and SWOT analyses of the company are made. The studied scientific works and articles made it possible to consider the world smartphone industry, the place of Huawei in it, its abilities to survive in the tough struggle in the international market , present some solutions to sustainability of Huawei's competitive advantage. The business model canvas of the company KEY PARTNERS Google Youku Todou KEY ACTIVITIES Software development VALUE PROPOSITION Hig h tech affordable smartphones Customer oriented Link between hardware and software CUSTOMER RELATIONSHIPS Use of customer feedback for developing new products and technology Customer engagement CUSTOMER SIGMENTS Middle class customers KEY RESOURSES W ebsite and online stores I T and communications infrastructure M anufacturing facilities. Content development CHANNEL S E-commerce Few physical stores Advertisement through customers COST STRUCTURE Production RD REVENUE STREAMS Smartphone sales Other devices sales SWOT Analyses for Xiaomi S trengths One of the Largest Smartphone maker - Xiaomi is one of the largest smartphone makers in the world. It is said to be the 5th largest smartphone manufacturer as of 2017. Originating from China, the Smartphones are manufactured in huge quantities and have wide acceptance across the world. Highest selling Smartphone - The REDMI Note 4 became the highest selling smartphone in India and China and practically in 50% of the Asian market. This shows that Xiaomi is strongly rising in the smartphone market and has already beaten several giants. Huge China and Asia market available - Another benefit to Xiaomi is that the whole Asian market is their playground. As China lies within Asia and as Chinese mobile brands are highly penetrated in the Asian markets , Xiaomi still has a lot of ground to explore. Good Qualityproducts - Even at such low prices, no one can doubt the quality of Xiaomi phones. The smartphones are regularly rated high on all E-commerce portals - a further proof that Xiaomi does not compromise on quality even if lowers the price regularly. E-commerce advantage - The Flash sale model is a very popular model which has worked wonders for Xiaomi. In this model, the product is made available only in limited quantities and sold at a very low price . This model made the consumers crazy and each Xiaomi looked like a price which was hard earned. Weaknesses Offline Distribution - Xiaomi mainly sold through the flash sale but at times, it was difficult for customers to get their hands on a REDMI or MI model phone. This is because their offline distribution is not upto mark and Xiaomi phones sell mainly via E-commerce. Advertising and Marketing spends- The advertising and marketing spends of the brand is very low. The brand launches ATL campaigns only when coming up with a new product . However, the advertising is erratic at best